SushiSwap V3

Rejected venues wait the longest for re-review; a rejection has to earn another look before the scheduled date.

SushiSwap V3 is a Uniswap V3 fork deployed across a broad multichain footprint. Concentrated ranges sharpen the core AMM problem, since the pool rebalances the pair against the depositor as prices move and the position earns fees only inside its range. That impermanent-loss exposure is what our rule rejects across the category, whatever the fork’s quality. The DefiLlama API read on 2026-08-15 reported about $39.6M across 28 nonzero chain deployments, led by Ethereum, Katana and Hemi.

Kill criteria: the events that revoke this verdict
• Ships a product line without impermanent-loss exposure that merits its own review

The research file

Mechanism applicability

Sushi V3 lets a liquidity provider select a fee tier and a bounded price range for a paired-asset position. Capital earns fees only while market price is inside that range. Sushi explicitly explains that as one asset appreciates it is sold for the other, and that a position ending outside the range can be left mostly or entirely in the non-appreciating asset. Tight ranges increase capital efficiency but can amplify impermanent loss. That proves direct applicability of the v1 AMM-LP dossier.

Current observation and scope

The DefiLlama protocol API read on 2026-08-15 reported approximately $39.6M of SushiSwap V3 TVL across 28 nonzero chain deployments, led by Ethereum, Katana and Hemi. Current Sushi materials still instruct providers to create V3 positions, select ranges and manage them as price moves. This application establishes the concentrated-liquidity mechanism and current survey perimeter only; pool assets, chain eligibility, contract authorities, audits, integrations and incidents remain outside the class application.

Control and exit applicability

A V3 position owner selects the initial range and may decrease or remove liquidity, but Sushi says an out-of-range position stops earning fees and one side of the pair is sold into the other. Removing the position returns that resulting inventory and crystallizes any divergence from simply holding the assets. Third-party or Sushi Smart Pool managers can automate range selection and rebalancing, but automation changes who manages the path; it does not remove the LP inventory exposure or guarantee a low-loss exit.

Why the shared dossier decides

The v1 AMM-LP rule rejects advised exposure to path-dependent inventory rebalancing and impermanent loss. Concentration, fee tiers, active management and broad deployment do not change that return source and can make the loss more acute when a range is tight. Reopen only for a separately identified Sushi product that has no LP inventory or impermanent-loss exposure and whose return can be underwritten independently; additional chains, pools, incentives or TVL would not reopen this record.

Sources

The claims above trace to these. Where a number could not be independently verified, the thesis says so.

• Sushi — what V3 liquidity providers need to know · primary · accessed 2026-08-15
  Supports: concentrated liquidity, fee range, one-sided position, amplified impermanent loss, active management
• Sushi Academy — V3 position and exit walkthrough · primary · accessed 2026-08-15
  Supports: range selection, liquidity removal, out-of-range conversion, fee cessation
• Sushi Academy — current V3 liquidity guide · primary · accessed 2026-08-15
  Supports: V3 position, range management, capital efficiency, APR excludes impermanent loss, Smart Pools
• DefiLlama — SushiSwap V3 survey record, read 2026-08-15 · secondary · accessed 2026-08-15
  Supports: current TVL, chain distribution, DEX category, survey perimeter

Inherited controls

The verdict above grades the protocol layer. Every position also inherits the asset it holds and the chain it settles on. The least safe layer sets the position’s grade, and the position table names which one that is.